Canada’s innovation economy is transforming how the automotive industry competes with global manufacturers. Canadian automotive suppliers must work smarter and develop new technologies or processes that enable clean, efficient automobiles to be created. To incentivize this transition, the Canadian federal government created the Automotive Supplier Innovation Program (ASIP) to support investment into research and development activities.
The Automotive Supplier Innovation Program was assigned $100 million in 2015 to fuel the innovative growth of manufacturers until 2020. Canadian government grants are issued from ASIP and may provide up to 50% of eligible expenses to a maximum $10 million over the program’s lifetime.
As of August 2016, 13 projects have been awarded up to $25,116,490 in Canadian government grants through the Automotive Supplier Innovation Program. With nearly 75% of the program’s funding pool still available for investment, more automotive suppliers should consider applying. If your business is investing in projects similar to the successfully funded ones below, they may be a good fit for these research grants.
Automotive Supplier Innovation Program: Successful Projects
The following 6 projects have been awarded ASIP research and development grants since the program’s launch in 2015:
Pravala Networks – $9,742,500 for Connected Vehicle Technologies
Nearly $10 million, ASIP’s maximum funding contribution, will be awarded to Pravala Networks, an automotive technology firm. ASIP research grants will assist Pravala to develop a new platform that lets automotive OEMs access tools to manage autonomous (self-driving) vehicles.
Exco Technologies – $4,588,000 for High-Pressure Die-Cast Moulds
Exco Technologies is a global designer, developer, and manufacturer of dies and moulds for the automotive industry. With ASIP research and development grants, the business will be able to make high-pressure die-cast moulds that use less steel than currently used processes. Their 3D printing process will also be refined, leading to faster and more reliable production for automotive components.
The Electromac Group – $1,478,500 for Hot Stamping Small Components
Nearly $1.5 million will be awarded to The Electromac Group, a manufacturer specializing in hot and cold stamping of automotive parts. The company will use their ASIP grants contribution to develop an innovative prototype/process that will allow them to stamp up to 64 components at a time.
Smarter Alloys – $1,121,100 for Advanced Materials Development
Smarter Alloys is at the forefront of developing innovative shape memory materials. Over $1 million in Automotive Supplier Innovation Program grants will be leveraged by the company to develop Multiple Memory Materials™ for use in the automotive industry. These advanced materials will be able to change shape as required for components such as door latches and grill shutters.
Novo Plastics – $850,000 for Plastic Parts Development
Plastics manufacturer, Novo Plastics, will receive nearly $1 million in ASIP research and development funding to develop a reliable plastic muffler system. By replacing dated steel mufflers, automotive manufacturers will be able to create lighter, more fuel-efficient vehicles.
Invotek Electronics – $412,025 for Radar System Development
Autonomous vehicle technologies are rapidly accelerating as more automotive assemblers are integrating them into new models. Innovative companies who can revolutionize this space are receiving heavy investments to begin developing and commercializing their tech. Invotek Electronics Inc. is one of the companies leading this progress and will receive ASIP grants to develop innovative radar technologies to help steer vehicles and maintain passenger safety.
ASIP Canadian Government Grants for Research and Development
The Automotive Supplier Innovation Program (ASIP) provides research grants to Canada’s most innovative automotive companies. Automotive parts manufacturers and automotive suppliers may receive up to 50% of expenses to innovative research and development projects which result in new innovative capabilities.
ASIP-funded innovations could include new production methods to reduce time/cost, lighter and more fuel-efficient automotive components, or testing and inspection technologies that require less labour, time, or rework.
Automotive Supplier Eligibility for ASIP
To qualify for the Automotive Supplier Innovation Program, Canadian businesses must:
- Have 500 or fewer full-time payroll employees OR have less than $1 billion in global revenues; and
- Serve the automotive industry through software, equipment, or processes.
How to Apply for the Automotive Supplier Innovation Program
To apply for ASIP technology development grants, businesses must submit a detailed application to Innovation, Science and Economic Development Canada. Upon document submission, the Government of Canada will review applications within a 6-8 week period then notify applicants of next steps.
To get started, automotive suppliers should first ensure their project’s eligibility for ASIP technology development grants. Mentor Works can assist your company to learn if ASIP is the right government funding program for your project. Please contact Mentor Works to learn more about the program and begin the application process with a Canadian Government Funding Planner.
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